Legal Aspects of Finance - 10

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question A statement of all transactions with the related parties including
the basis shall be placed before the ________.
Correct Answer Audit committee
Your Answer Audit committee
Multiple Choice Multiple Answer
Question In calculating the limit of all the companies which companies are
excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making
companies
Your Answer Private Companies , Non Profit making companies , Foreign
companies
True/False
Question Bonus is an ex gratia payment.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question The Board is required to give explanation for the adverse remark
given by :-
Correct Answer Auditor
Your Answer Auditor
Multiple Choice Multiple Answer
Question Who is an independent director?
Correct Answer Non executive director , Who receives director remuneration ,
Who is not related to the promoters
Your Answer Non executive director , Who receives director remuneration ,
Who is not related to the promoters
Multiple Choice Single Answer
Question Who decided about the philosophy and the significance of the
conditions in India?
Correct Answer Supreme court
Your Answer Supreme court
Multiple Choice Multiple Answer
Question Who is not entitled to bonus?
Correct Answer An apprentice , Employee employed through contractors
Your Answer An apprentice , Employee employed through contractors
True/False
Question Default in placing annual accounts before AGM may result in
imprisonment.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Audit committee shall consist of not less than :-
Correct Answer Three directors
Your Answer Three directors
Match The Following
Question Correct Answer Your Answer
Section 2(vi) Wages Wages
Wages act 1936 1936
Factories act 1948 1948
Section 3 of wages act Every employer
responsible for payment to
employed persons
Every employer
responsible for payment to
employed persons
Multiple Choice Multiple Answer
Question Board of directors have to take consent of general meeting for :-
Correct Answer Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Contribute to charitable
funds exceeding Rs 50000/- or 5% of average net profits
Your Answer Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Contribute to charitable
funds exceeding Rs 50000/- or 5% of average net profits
Multiple Choice Single Answer
Question As per the provisions of Companies Act 1956, no company can
issue preference shares which are irredeemable or redeemable
after a period of :-
Correct Answer 20 years
Your Answer 5 years
Multiple Choice Multiple Answer
Question Board may by resolution passed at the meeting delegate the
powers to :-
Correct Answer Committee of directors , Managing director , Manager
Your Answer Committee of directors , Managing director , Manager
Multiple Choice Single Answer
Question Cap on investment by person resident outside India, for Housing
& Real Estate Sector is :-
Correct Answer 1
Your Answer 1
Multiple Choice Multiple Answer
Question Briefly describe the scheme of the bonus act :-
Correct Answer To impose statutory liability upon every employer to pay bonus
to employees , To define principle of payment of bonus as per
the prescribed formula , To provide payment for minimum and
maximum bonus and link the scheme for set off and set on
Your Answer To impose statutory liability upon every employer to pay bonus
to employees , To define principle of payment of bonus as per
the prescribed formula , To provide payment for minimum and
maximum bonus and link the scheme for set off and set on
True/False
Question Retiring director may be eligible for reappointment.
Correct Answer True
Your Answer True
True/False
Question Every company shall have a qualified and independent audit
committee.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question ECB stands for :-
Correct Answer External Commercial Borrowings
Your Answer External Commercial Borrowings
Select The Blank
Question ________shall certify that they have reviewed the balance sheet
and profit and loss account.
Correct Answer CEO
Your Answer CEO
Multiple Choice Single Answer
Question Deductions are authorized under which section?
Correct Answer Section 7(2)
Your Answer Section 7(2)
True/False
Question Indian companies can't borrow funds in Rupees.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , Offshore payment , By automatic route
True/False
Question Every company has to appoint an auditor to audit the accounts
of the company and has to fix remuneration to be paid to the
auditor.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Who are governed by the payment of wages act?
Correct Answer Employed persons , Salary less than 1600 per month
Your Answer Employed persons , Salary less than 1600 per month
Select The Blank
Question For Special Resolution, votes cast in favour of the resolution
should be ________ times more than votes cast against the
resolution.
Correct Answer 3
Your Answer 3
True/False
Question Any gratuity payable on termination of employment is included in
wages.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Any contract or arrangement in which director is interested has
to be recorded in :-
Correct Answer Register of contracts
Your Answer Register of contracts
Select The Blank
Question Multimodal ________ making remittance to their agents abroad.
Correct Answer Transport operators
Your Answer Transport operators
Select The Blank
Question The act defines ________ in private sector and public sector.
Correct Answer Establishment
Your Answer Employee
True/False
Question A company can be incorporated with the name using words
Hindustan, India.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented
merely by book entries are not prejudicial to the interest of the
company or members , Whether loans & advances made by the
company have been shown as deposits , Whether personal
expenses have been charged to revenue account
Your Answer Whether transactions of the company which are represented
merely by book entries are not prejudicial to the interest of the
company or members , Whether loans & advances made by the
company have been shown as deposits , Whether personal
expenses have been charged to revenue account
Select The Blank
Question Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted
Your Answer Convicted
Select The Blank
Question If the articles are silent who will be the ________ director of the
company, the subscribers to the members shall deemed to be
directors of the company.
Correct Answer First
Your Answer First
True/False
Question Preference share holders are creditors of the company.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question A person can not be appointed as director of the company if :-
Correct Answer He is found to be of unsound mind , He is declared as an
insolvent , He has not taken qualification shares
Your Answer He is found to be of unsound mind , He is declared as an
insolvent , He has not taken qualification shares
Multiple Choice Single Answer
Question For using the words 'Industry/ Udyog', the minimum authorised
capital should be :-
Correct Answer Rupees One crore
Your Answer Rupees Five lac
Multiple Choice Single Answer
Question What types of rates can be fixed for different zones and
localities?
Correct Answer Different
Your Answer Different
Select The Blank
Question To avoid conflicts of interest, ________ committee would
determine the remuneration packages of the executive directors.
Correct Answer Remuneration
Your Answer Remuneration
Multiple Choice Single Answer
Question Minutes of general meeting are to be finalised and signed within
:-
Correct Answer 30 days
Your Answer 30 days
Select The Blank
Question The form should be filled within ________ days from the date of
execution of document.
Correct Answer 30 days
Your Answer 21 days
Multiple Choice Single Answer
Question To safeguard the interest of the company or its shareholders or
the public interest, the central government, may appoint such
number of person as directors to hold office for a period not
exceeding :-
Correct Answer 3 years
Your Answer 2 years
Multiple Choice Multiple Answer
Question What is the board procedure ?
Correct Answer Meeting to be held 4 times in a year , Should not be a gap of
more than 4 months between 2 meetings , Minimum information
should be made available
Your Answer Meeting to be held 4 times in a year , Should not be a gap of
more than 4 months between 2 meetings
Select The Blank
Question No loan or investment shall be made or guarantee given by
company unless ________ is passed at the meeting by the
board.
Correct Answer Resolution
Your Answer Resolution
True/False
Question Senior managers are members of management, one level below
the executive director.
Correct Answer True
Your Answer False
Match The Following
Question Correct Answer Your Answer
Bifurcation Voted for/ against Not less than 5 % voting
power
Ordinary resolution Simple majority Simple majority
Requisition of members Not less than 5 % voting
power
Form 32
Special resolution Form 23 Form 23
Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Banks , Financial Institutions
Select The Blank
Question ________ includes legal representative of deceased employer.
Correct Answer Employer
Your Answer Employee